Basel III implementation assessments of Russia and Turkey published by the Basel Committee

15 March 2016

Press release

Today the Basel Committee on Banking Supervision published reports assessing the implementation of the Basel risk-based capital framework and the Liquidity Coverage Ratio (LCR) for Russia and Turkey. These form part of a series of reports on Basel Committee members' implementation of Basel standards under the Committee's Regulatory Consistency Assessment Programme (RCAP). A key component of the RCAP is to assess the consistency and completeness of a jurisdiction's adopted standards and the significance of any deviations from the regulatory framework. The RCAP does not take account of a jurisdiction's bank supervision practices nor does it evaluate the adequacy of regulatory capital and high-quality liquid assets for individual banks or a banking system as a whole.

Overall, the assessment outcomes for both Russia and Turkey are positive and reflect various amendments to the risk-based capital and LCR rules undertaken by the authorities during the respective assessments. The Basel Committee noted that several aspects of the domestic rules in both countries are more rigorous than required under the Basel framework.

Russia

Overall, the domestic implementation of the risk-based capital framework is found to be "compliant" with the Basel standards as all components are assessed as "compliant". Russia is also assessed as "compliant" with the Basel LCR standards, including the LCR regulation and the LCR disclosure standards. A compliant assessment grade is the highest of the four possible grades.

Turkey

Overall, the domestic implementation of the risk-based capital framework is found to be "compliant" with the Basel standards as all components are assessed as "compliant". Turkey is also assessed as "compliant" with the Basel LCR standards, including the LCR regulation and the LCR disclosure standards. A compliant assessment grade is the highest of the four possible grades.

In carrying out the reviews of Russia and Turkey, the assessment teams held discussions with senior officials and technical staff of the Central Bank of Russia and the Banking Regulation and Supervision Agency of Turkey. The teams also met with a select group of banks in both countries.

Post-assessment follow-up actions

In addition to the RCAP assessment reports, today the Committee published overviews of post-RCAP follow-up actions taken by Australia, Brazil, Canada, China, European Union, Japan, Singapore, Switzerland and United States. During 2012 - 2014, assessments were made of these jurisdictions' regulatory implementation of the Basel standards. The follow-up reports, which are based on self-reporting, summarise where the jurisdictions have taken, or plan to take, further actions to address findings raised in the RCAP assessments. The Committee will publish in 2017 post-RCAP monitoring reports for jurisdictions that were assessed in 2015.

Notes to editors

The Basel Committee on Banking Supervision consists of senior representatives of bank supervisory authorities and central banks. Member countries include Argentina, Australia, Belgium, Brazil, Canada, China, France, Germany, Hong Kong SAR, India, Indonesia, Italy, Japan, Korea, Luxembourg, Mexico, the Netherlands, Russia, Saudi Arabia, Singapore, Spain, South Africa, Sweden, Switzerland, Turkey, the United Kingdom, and the United States.

The RCAP is a central element of the Basel Committee's continuing efforts to promote timely adoption of its standards and to monitor its members' full and consistent compliance with the Basel framework. The RCAP also helps member jurisdictions identify deviations from the Basel framework, weigh the materiality of any deviations and undertake necessary reforms. Based on the findings of these assessments, many assessed jurisdictions have already amended their regulations to align them more closely with the Basel framework, thereby helping to promote global financial stability and a level playing field for internationally active banks.

The Basel Committee has previously published jurisdictional assessments of Australia, Brazil, Canada, China, the European Union, Hong Kong SAR, India, Japan, Mexico, Saudi Arabia, Singapore, South Africa, Switzerland, and the United States.